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Maximizing stockholder wealth

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Which of the following is NOT consistent with maximizing stockholder wealth?

(a) Increasing product quality

(b) Increasing productivity

(c) Maximizing the growth rate

(d) Reducing capital costs

(e) Maximizing the company's return on investment (ROI)

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Answer to a multiple choice question on Maximizing stockholder wealth.

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Answer: (d) Reducing capital costs

If the firm reduces capital expenditures ...

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